MKTG 3310 Practice Exam 3

1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________.
market targeting
2) What are the four steps, in order, to designing a customer-driven marketing strategy?
C) market segmentation, targeting, differentiation, and positioning
3) Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more ________ with products and services that match their unique needs.

A) efficiently
B) effectively
C) intensely
D) indirectly
E) both A and B

E
4) Even though several options are available at any one time, there ________ to segment a market.
is no single way
5) Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation.
geographic
Pendergraff Pet Supplies divides the pet market according to the owners’ race, occupation, income, and family life cycle. What type of segmentation does Pendergraff use?
demographic
Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets. What is it?
demographic
When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing ________ segmentation.
age and life cycle
Marketers must be careful to guard against ________ when using age and life cycle segmentation.
stereotyping
When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely primarily using which type of segmentation?
gender
Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation?
income
The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation.
behavioral
Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item?
occasion
Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________.
user status
Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________.
loyalty status
By studying its less loyal buyers, a company can detect which brands are most ________ with its own.
competitive
Many firms make an effort to identify smaller, better-defined target groups by using ________.
multiple segmentation bases
As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets.
benefits; buying behavior
International Drilling Company segments its foreign markets by the income levels of a country’s population. This firm segments on what basis?
economic factors
Lexus targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________.
intermarket segmentation
When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________.
measurable
When a market segment is large or profitable enough to serve, it is termed ________.
substantial
When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________.
actionable
The market segments your company is targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. Therefore, these segments are ________.
differentiable
The 55-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) ________.
target market
Mass marketers, such as Target and Venture Stores, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting?
undifferentiated marketing
When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing.
differentiated
Typically, developing a strong position within several market segments creates more total sales than ________ marketing across all segments.
undifferentiated
Using concentrated marketing, the marketer goes after a ________ share of ________.
large; one or a few niches
Today, the low cost of setting up shop ________ makes it even more profitable to serve very small niches.
on the Internet
Which of the segmenting strategies carries higher-than-average risks in consumer markets?
concentrated
As You Like It, Inc., customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________ marketing.
micro
When Wal-Mart customizes its merchandise store by store to meet shopper needs, it is practicing ________.
local marketing
When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs, it is following ________.
mass customization
When choosing a target marketing strategy, many factors need to be considered. Which of the following does your text NOT mention as important?
product cost
Which group determines a product’s position relative to competing products?
CONSUMERS
A product’s position is based on important attributes as perceived by ________.
CONSUMERS
A company or store gains a(n) ________ by differentiating its products and delivering more value.
competitive advantage
A company or market offer can be differentiated along the lines of product, image, services, channels, or ________.
people
Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance?
channel
Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What does USP stand for?
Unique Selling Proposition
You have just created the “perfect” ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ________.
its value proposition
) The answer to the customer’s question, “Why should I buy your brand?” is found in the ________.
value proposition
What competitive positioning strategy can attack a more-for-more strategy by introducing a brand offering with comparable quality at a lower price?
more-for-the-same
Which positioning strategy offers consumers a “good deal” by offering equivalent-quality products or services at a lower price?
same-for-less
“Less-for-much-less” positioning involves meeting consumers’ ________.
lower quality requirements in exchange for a lower price
When marketers at Procter & Gamble selected the Millennials, a demographic that includes college students, as an untapped group of potential customers for their Febreze line of products, they were executing which step in the process of designing a customer-driven marketing strategy?
targeting
Segmenting voters as either democrats or republicans is an example of ________.
psychographic segmentation
At one time Miller Beer was known as the “champagne of bottled beer.” Unfortunately, Miller drinkers did not drink much beer. To increase sales, Miller was repositioned to attract the members of the middle working class. This segmentation approach is ________.
psychographic segmentation
Sanguine Services practices a marketing strategy where its limited resources are used to go after a large share of two small niches. Sanguine practices which one of these strategies?
concentrated
Ford Motor Company emphasizes “Quality first-Ford tough” in its truck products. The company has developed a differentiation strategy based on ________.
image
A product’s position is based on important attributes as perceived by ________.
CONSUMERS
4) Even though several options are available at any one time, there ________ to segment a market.